Lyft Inc. (NASDAQ:LYFT) disclosed a rise in its business following the lifting of coronavirus-led restrictions. Lyft’s total number of rides climbed 26% in May versus the prior month. The company also said it expects adjusted EBITDA loss to not exceed $325 million if daily volumes in June remain at a similar level versus May.
Meantime, Wedbush Securities keeps an Outperform rating on Lyft after the company's business update yesterday.
Analyst Dan Ives views the incremental improvement in rides as another major step in the right direction. "It's still a slow thaw, and with multiple macro levers over the course of the year, and likely an even longer return to normal environment, including business travel, there's still a long road ahead for rideshare," he notes.
Ives also thinks Lyft management has pulled the right levers during the difficult period.
"Lyft has done an admiral job controlling and right-sizing expenses during the pandemic as well, and while some, like layoffs, were difficult decisions to make, Lyft ultimately made necessary moves and has positioned itself for better profitability once demand does return closer to normal on the other end of the pandemic, whenever it comes."
Wedbush has a price target of $38 on Lyft to rep 20% upside potential. The average sell-side PT is $41.62.
Lyft shares gained $3.03, or 9.6% to $34.71 to begin Wednesday.
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